• International Area Studies Review
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• v.13 no.3
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• pp.729-757
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• 2009

This paper examines if China' each province.city manages its organization well after China's WTO affiliation; and on the ground, judges how much each province city needs to improve. China's each province city data from 2002 to 2006 is used to evaluate technical efficiency by using the input-oriented CCR model and the input-oriented BCC model. Analytical results show that only Shanghai gets continuously the highest efficiency score from 2002 to 2006 and so the other provinces cities need to benchmark Shanghai to elevate their efficiency. There can be regional, cultural and emotional differences among the provinces cities but Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang get low efficiency scores even after China's WTO affiliation. The Chinese government can make use of efficiency evaluation results by DEA as basic materials in making economic development schemes in order to reduce these deviations as various minority races constitutes China and there are regional deviations of degree of economic development in China.

• International Area Studies Review
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• v.12 no.3
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• pp.25-47
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• 2008

This paper tries to explore the impact of economic globalization on social capital accumulation. To investigate direct effect, we build a model and derive a proposition which can explain the relative decline in social capital brought about by market expansion. Besides direct effect, we also explore channel effect through democracy, government size, education attainment, and inequality. We estimate direct and channel effect of globalization using cross section of 65 countries data time period 1980-1999 using three-stage least squares(3SLS). Results are in line with predictions and clearly support that globalization significantly and negatively affects social capital accumulation. Channel effect also shows that globalization has a negative effect through aggravating income inequality while it has a positive effect through higher education attainment, higher level of democracy and larger government spending. Such a net negative channel effect reinforces our prediction. As a robustness check we estimate other sets of data and the result strongly supports our theory.

• International Area Studies Review
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• v.14 no.3
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• pp.477-498
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• 2010

This paper studies economic growth convergence conditioning on various characteristics of East Asian countries. Our findings suggest that when trade openness is conditioned in addition to human capital and investment, the economic growth rates for East Asian countries converge faster than when human capital and investment alone are considered. In particular, while Northeast Asian countries exhibit absolute economic growth convergence as well as economic growth convergence conditioned on trade openness, Southeast Asian countries show only economic growth convergence conditioned on trade openness. Analysis of policy implications based on the results of the first East Asian countries' high dependence on foreign trade, trade openness in the convergence of economic growth has had a significant positive effect. Second, in order to establish a regional economic integration in East Asia, Northeast Asia and Southeast Asia, the country's economic growth is necessary to reduce the gap.

• International Area Studies Review
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• v.13 no.3
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• pp.361-383
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• 2009

This study extends theoretically the expected utility model of trade-conflict developed by Polacheck if a third country is involved, and analyses empirically how trade between North Korea and China affects to the political conflict between South and North Korea. The results of empirical analysis show that North Korea's exports to South Korea and China do not affect the conflict or cooperative relations between South and North Korea. But North Korea's imports from South Korea and China affect to the conflict between South and North Korea: increasing of North Korea's imports to South Korea reduce conflict between South and North Korea, but increasing of North Korea's imports to China increase conflict between South and North Korea.

• International Area Studies Review
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• v.14 no.3
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• pp.157-177
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• 2010

This study analyzes the effect of fiscal decentralization on economic growth by using each province city's panel data of China from 1985 to 2008. By using Recently developed fiscal decentralization index and autonomy of local government quantified this study finds the following conclusions. The increase of inflation rate affects positive effect on Chinese economy. This is the trade-off relationship with the growth of Chinese economy by the Phillips Curve theory. So this suggests the instability of Chinese economy. The affiliation of WTO of China shows positive effect on Chinese economy. This can be translated as the real evidence about free trade theory of Classical School. Expenditure decentralization in China led to economic growth and revenue decentralization also affected positively although it was not as much as expenditure decentralization's effect. Central tax and local tax negatively influenced economic growth; and differently from our expectation, local government autonomy quantified was not relevant to economic growth.

• International Area Studies Review
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• v.22 no.4
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• pp.19-35
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• 2018

This paper is to estimate the total factor productivity(TFP) in the Korean manufacturing and service industries during the period 1975:1-2016:4 using the stochastic frontier analysis model. In order to analyze the determinants for the total factor productivity the paper estimates the industry-specific determinant elasticities of TFP using the autoregressive distributed model. The industry-specific determinants, which reflect the industrial structure and properties include markup, the ratio of capital to labor(KL), and the ratio of foreign intermediate goods (FIG) to industrial output. The average value for total factor productivity growth was estimated to be 0.0199 in manufacturing and 0.0063 in the service industry. The markup and KL elasticities of TFP were estimated to be 2.481 and 0.651 in manufacturing respectively and -1.403 and 0.042 in the service industry respectively. The empirical results suggest that the industrial markup and the ratio of capital to labor have had decisive effects on the changes in the total factor productivity in the Korean manufacturing and service industries during the period 1975:1-2016:4.

• International Area Studies Review
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• v.22 no.1
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• pp.41-60
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• 2018

It is widely known that the increased productivity lead to a decrease in energy consumption. The policy for reducing energy consumption is also focusing on the improvement of firm's productivity. However, the issue of productivity dilemma phenomenon is recently raised in various fields. It is phenomenon that the increased productivity rather lead to a increased in energy consumption through a rise in output. This paper analyzed the presence of productivity dilemma in korean firm using Tang et al(2015)'s theoretical model. To closely analyze, I performed the analysis using 715 firms during 2011-2015 and estimated the model using system GMM to minimize the endogeneity. The results show that total effect of productivity had a significantly negative coefficient. It is implies that the increased productivity doesn't increase energy consumption. In other word, this paper could not identified productivity dilemma and so did in overseas investment firm and national firm cases.

• International Area Studies Review
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• v.13 no.3
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• pp.213-238
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• 2009

This paper empirically examines effects of exporting on employment over the period 2000-2007 for Korean listed and non-listed manufacturing firms. The paper employs the dynamic panel model of labor demand and controls for simultaneity of the exports and real wages using a two step random effect Tobit-DPD (Dynamic Panel Data) procedure. Our empirical results suggest that surprisingly, there is no robust evidence for employment effects of exporting of Korea's large firms and small-medium sized firms during the sample period after Korean financial crisis. This implies that Korean exporting patterns have been changed in a way that exporting highly capital intensive goods leads to importing more intermediate goods and thus to countervailing the employment effects of exporting. This suggests that expansion of exporting by lowering exporting prices through the bilateral FTA might not be helpful to enhancing employment in Korea.

• International Area Studies Review
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• v.16 no.3
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• pp.77-97
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• 2012

Estimated coefficients has serious problems including inconsistency, biasness, etc. because many researches about the effect of fiscal decentralization on a country's economic growth use the traditional OLS method. Researches use the data intactly so that so called "spurious regression" phenomenon exists. This causes fundamental fallacy. This research tries unit root test, cointegration test, and then estimates the United States' economic time series by using VECM. The analysis of the effect of the state level-fiscal decentralization on economic growth shows two long term-equilibriums. During short term-dynamic adjustment, fiscal decentralization and economic growth move the same or different directions. In case of prediction GDP increases steeply and then from 2015 gently; and fiscal decentralization index shows a general reduction trend and then decreases slowly. At local level it shows two long term-equilibriums. During short term-dynamic adjustment, fiscal decentralization and economic growth also move the same or different directions. Impulse response analysis shows the very negative effect of fiscal decentralization on economic growth.

• International Area Studies Review
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• v.20 no.1
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• pp.147-165
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• 2016

We empirically examine the validity of second generation endogenous growth theory suing 21 OECD countries' panel data(1981~2011). Due to non-stationarity in all variables, we test the cointegrated relationships strongly supporting the semi-endogenous growth model. In the estimation of total factor productivity growth function, the growth of domestic and foreign R&D investment levels statistically significantly affect total factor productivity growth. R&D intensity, however, has significant impacts on the total factor productivity growth only in a few models, and international technology gap also has positive impacts on GDP growth. Thus the semi-endogenous growth model is relatively supported while fully endogenous growth model is weakly and occasionally supported in OECD countries. The policy implication of supporting the semi-endogenous growth model is that the sustaining growth requires increasing R&D expenditures.